Salesforce, Inc.CRM
NYQ • Technology
$170.77
P/E
19.67
PEG
0.54
FCF Yield
10.3%
Rev Growth YoY
+13.3% YoY
Gross Margin
76.9%
Health Score
8/10
D/E Ratio
1.15
Confidence
MEDIUM
Business Snapshot
Salesforce is the dominant player in the customer relationship management (CRM) market, selling cloud-based software applications for sales, service, marketing, and commerce. The company operates in the highly competitive enterprise software application industry, where it commands the largest share of the CRM market. As a large-cap company with a market capitalisation of $139.86B, it generates substantial revenue of $42.83B on a trailing twelve-month basis. A key defining characteristic is its extremely strong free cash flow generation, which at $14.40B provides significant strategic flexibility for acquisitions, share buybacks, and investment.
Financial Health
Gross margin stands at a strong 76.9%, though it has slightly slipped from 77.6% in the prior year, while the net margin of 18.7% reflects efficient operations and strong profitability. The balance sheet shows a Debt/Equity ratio of 1.15x, indicating a moderate use of leverage that is manageable, though the current ratio of 0.79x points to a potential short-term liquidity strain as current liabilities exceed current assets...
Risk Assessment
- REVENUE DECELERATION — While YoY revenue grew 13.3%, the most recent quarter saw a sequential decline of -0.6%, raising a cautionary flag on near-term momentum.
- DEBT / LIQUIDITY — The current ratio of 0.79x indicates that current liabilities exceed current assets, potentially creating a short-term liquidity constraint.
- 52-WEEK POSITION — The current price of $170.77 is well below the midpoint of the 52-week range ($210.16) and sits near the bottom of the range, 37.6% below the 52-week high of $274.00.
- TECHNICALS — Price is firmly below both its 50-day moving average ($171.92) and its 200-day moving average ($208.81), with a death cross formation confirming a bearish trend.
- MARGIN CONTRACTION — Gross margin declined from 77.6% to 76.9% year-over-year, a slight deterioration that bears monitoring for potential competitive pressure or cost inflation....
Gross margin stands at a strong 76.9%, though it has slightly slipped from 77.6% in the prior year, while the net margin of 18.7% reflects efficient operations and strong profitability. The balance sheet shows a Debt/Equity ratio of 1.15x, indicating a moderate use of leverage that is manageable, though the current ratio of 0.79x points to a potential short-term liquidity strain as current liabilities exceed current assets. Free cash flow is an enormous $14.40B, translating to a very attractive FCF yield of 10.3%, demonstrating the company's exceptional ability to convert revenue into cash. Overall, financial health is robust, providing ample capacity for shareholder returns and reinvestment, though the current ratio warrants a watchful eye.
- REVENUE DECELERATION — While YoY revenue grew 13.3%, the most recent quarter saw a sequential decline of -0.6%, raising a cautionary flag on near-term momentum. - DEBT / LIQUIDITY — The current ratio of 0.79x indicates that current liabilities exceed current assets, potentially creating a short-term liquidity constraint. - 52-WEEK POSITION — The current price of $170.77 is well below the midpoint of the 52-week range ($210.16) and sits near the bottom of the range, 37.6% below the 52-week high of $274.00. - TECHNICALS — Price is firmly below both its 50-day moving average ($171.92) and its 200-day moving average ($208.81), with a death cross formation confirming a bearish trend. - MARGIN CONTRACTION — Gross margin declined from 77.6% to 76.9% year-over-year, a slight deterioration that bears monitoring for potential competitive pressure or cost inflation.
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